The former Minister of Economy sees the dollarization plan as a failed strategy that worsens the current economic crisis and warns of the risks associated with the management of the country’s reserves, particularly with regard to the outflow of gold from the Central Bank.
Martin Guzman, former Minister of Economyagain attacked the economic policy implemented by the Government and its plan Dollarization proposed by President Javier MileiThe former official harshly criticized the dollarization strategy, which he called a “failure of the system” and highlighted the fragility of the proposed scheme.
Guzman He argued that the dollarization plan is doomed to failure because it prevents viable alternatives from being considered. In his opinion, this scheme is disastrous for the real economy and seriously harms the productive system. According to him, the economic policies implemented, which include a severe adjustment, not only result in a political failure, but also deteriorate the country’s economic structure.
The former official’s words come from his last interview on C5N, and Guzmán also expressed concern about the recent outflow of gold reserves from the Central Bank. The economist described this movement as “dangersor” for economic stability.
The exit of gold and the cepo
It is worth remembering that a few days ago, when the news broke, Guzmán had expressed concern about this “move”, as stated by Luis Caputo, Minister of Economy. On the social network X (formerly Twitter) he strongly criticized the former vice president of the Central Bank, Lucas Llachwho responded with accusations of “spending depositors’ dollars.”
“Is this why they are taking the Central Bank’s gold out of the country? @JMilei, @LuisCaputoAR and Santiago Bausili?“, accused Guzmán, who now criticized the fact that the gold is transported in trucks in a discreet manner,suggesting that this practice poses serious risks to the perception of the Argentine economy by international investors and bondholders.
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Guzman questioned the lack of transparency in this process and warned that the outflow of gold could further weaken the country’s reserves, leaving it in a vulnerable position.
The former minister also reflected on the impact of a possible elimination of the exchange rate restrictions in the context of an already weakened economy. He believes that such a measure could result in a significant and politically costly exchange rate jump. Guzmán anticipates that Milei’s government could receive support from the International Monetary Fund (IMF) and the United States to carry out dollarization, although he doubts that there is enough reserves to guarantee the necessary stability.
In this way, Guzmán sees the dollarization plan as a failed strategy that worsens the current economic crisis and warns about the risks associated with the management of the country’s reserves, particularly with regard to the outflow of gold from the Central Bank.
Source: Ambito
